Correlation Between Jentech Precision and Yusin Holding
Can any of the company-specific risk be diversified away by investing in both Jentech Precision and Yusin Holding at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Jentech Precision and Yusin Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jentech Precision Industrial and Yusin Holding Corp, you can compare the effects of market volatilities on Jentech Precision and Yusin Holding and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Jentech Precision with a short position of Yusin Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jentech Precision and Yusin Holding.
Diversification Opportunities for Jentech Precision and Yusin Holding
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jentech and Yusin is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Jentech Precision Industrial and Yusin Holding Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yusin Holding Corp and Jentech Precision is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Jentech Precision Industrial are associated (or correlated) with Yusin Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yusin Holding Corp has no effect on the direction of Jentech Precision i.e., Jentech Precision and Yusin Holding go up and down completely randomly.
Pair Corralation between Jentech Precision and Yusin Holding
Assuming the 90 days trading horizon Jentech Precision Industrial is expected to under-perform the Yusin Holding. In addition to that, Jentech Precision is 2.2 times more volatile than Yusin Holding Corp. It trades about -0.15 of its total potential returns per unit of risk. Yusin Holding Corp is currently generating about -0.06 per unit of volatility. If you would invest 12,350 in Yusin Holding Corp on December 30, 2024 and sell it today you would lose (850.00) from holding Yusin Holding Corp or give up 6.88% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Jentech Precision Industrial vs. Yusin Holding Corp
Performance |
Timeline |
Jentech Precision |
Yusin Holding Corp |
Jentech Precision and Yusin Holding Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jentech Precision and Yusin Holding
The main advantage of trading using opposite Jentech Precision and Yusin Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jentech Precision position performs unexpectedly, Yusin Holding can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Yusin Holding will offset losses from the drop in Yusin Holding's long position.Jentech Precision vs. Lotes Co | Jentech Precision vs. Nan Ya Printed | Jentech Precision vs. Global Unichip Corp | Jentech Precision vs. Tong Hsing Electronic |
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Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Commodity Directory module to find actively traded commodities issued by global exchanges.
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